Raymond Ltd. Tanks 66% After Realty Demerger: 4 Key Facts Investors Must Know

Not every day, a company’s share price drops over 60% in a single trading session. When Raymond Ltd saw its stock crash nearly 66.56% on May 15, it raised some eyebrows. The plunge looked dramatic from ₹1,564.30 at Tuesday’s close to ₹523.10 on Wednesday. But before jumping to conclusions, here’s what happened.

This sharp fall does not result from a market sell-off or negative sentiment around the company. It’s a notional price adjustment due to Raymond Realty’s demerger, which now becomes a standalone entity. If you hold Raymond shares, this change doesn’t mean you’ve lost value—it just means your investment is now split between two companies instead of one.

Let’s break this down step-by-step so you can understand what triggered the fall, what the demerger means, and what lies ahead.

1. Why Did Raymond Ltd Shares Crash 66%?

The sharp drop in the stock price was triggered by the ex-date of the demerger, the day when Raymond Ltd officially split from its realty arm, Raymond Realty. The record date for this corporate action was May 14, meaning investors who held shares on that date will receive shares of the Realty once it is listed.

Here’s how the math works:

• Before the demerger, Raymond Ltd. included lifestyle and real estate businesses in its valuation. With Raymond Realty carved out, the mother brand’s remaining value dropped to reflect only its lifestyle and other operations. The 66.56% drop reflects the notional adjustment, not an actual investment loss.

Some trading platforms still show unadjusted data, making the drop appear steeper than it truly is. Importantly, shareholders will now own one share of Raymond Realty for each share of Raymond Ltd they held on the record date. So, the price has dropped, but the value hasn’t disappeared—it has simply been split between two separate business units.

2. Realty Debuts With Strong Financials

The Realty arm isn’t starting from scratch. The company enters this new chapter with a net cash surplus of ₹399 crore and solid financial performance. Here are some key numbers from the March 2024 quarter:

• Revenue: ₹766 crore (up 13% YoY)
• EBITDA: ₹194 crore
• EBITDA Margin: 25.3%

The demand for Raymond Realty’s projects in the Mumbai Metropolitan Region (MMR) continues strong. For Q4, the company reported a booking value of ₹636 crore, driven by projects like:

• The Address by GS 2.0
• Invictus
• Park Avenue – High Street Retail in Thane
• The Address by GS in Bandra

This shows that Raymond Realty is entering the listed space with momentum, clear market demand, and visibility.
Source: Economic Times

3. Expansion Through JDAs to Unlock ₹40,000 Cr Potential

Raymond Realty also scales its business through Joint Development Agreements (JDAs). These strategic tie-ups allow it to expand without owning all the land outright, a capital-efficient model gaining traction in Indian real estate.

In Q4 FY24, the company signed new JDAs in Mahim and Wadala, adding approximately ₹6,800 crore in potential Gross Development Value (GDV).

Let’s look at the broader picture:

• Thane land parcel potential: ₹25,000 crore
• JDA-led projects potential: ₹14,000 crore
• Total GDV potential: ₹40,000 crore

This positions Raymond Realty as a serious Mumbai real estate market contender. The model focuses on high-value urban locations with strong growth potential, sharpening its MMR focus.

4. Raymond Realty Listing by Q2 FY26

Following the demerger, Raymond Realty will operate independently and is expected to list on both NSE and BSE by the second quarter of FY26 (July–September 2025). Until then, shareholders will hold the entitlement for the new company, which will be reflected in their demat accounts once the listing is complete.

This is part of Raymond Group’s larger strategy of building focused verticals. In September 2024, the company had already demerged and listed its lifestyle business, reinforcing the group’s direction toward unlocking value across business units.

The standalone listing of Raymond Realty will allow markets and investors to evaluate the business independently, with its own earnings, risks, and growth trajectory, free from the valuation complexities of a conglomerate structure.
Source: Economic Times

It’s a Structural Realignment, Not a Panic Signal

Remember, the 66% fall in Raymond Ltd’s stock is a technical outcome of a corporate restructuring, not a market panic. Here’s what you, as an investor or market observer, should take away:

• The fall is notional, driven by a price adjustment post-demerger. Shareholders will receive shares in Raymond Realty, a profitable and growing real estate firm. The realty arm starts strong, with a net cash position, robust bookings, and growth momentum. A focused business model and upcoming listing could unlock more transparency and clarity.

What Does This Mean for Shareholders?

In simple terms, while Raymond Ltd’s share price has dropped, shareholders haven’t actually lost value. Instead, that value has shifted to another basket—Raymond Realty. If you held shares in Raymond before the record date of May 14, you’re now eligible to receive shares of Raymond Realty once it gets listed on the stock exchanges.

The new spin-off will debut on the NSE and BSE by the September 2025 quarter (Q2 FY26). Until then, your investment is essentially split. Raymond Ltd continues to trade with its core operations, and Raymond Realty will soon begin trading independently, reflecting its financials and market position. Source: Financial Express

Conclusion

The 66% drop in the share price reflects a structural change, not a loss in value. With Raymond Realty set to operate independently and list by Q2 FY26, shareholders now hold stakes in two focused entities. The demerger aligns with the group’s strategy to unlock value through clearer business verticals, allowing investors to assess each arm on its own operational and financial performance going forward.

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